Here is a partial list of steps to select and implement an ERP software package.   OpenPro gives you this list as a service to make it easier to get the system implemented.  This will help you select an ERP software package even if you decide not to go with OpenPro ERP Software.

OpenPro's Twenty Steps for Choosing the 
Right ERP Business Accounting Software Package
.

 OpenPro gives you this information because we know it will help you choose OpenPro as your solutions provider.

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1. Steering Committee (optional) - For larger companies, it may be important to establish a steering committee to oversee the evaluation and selection process. Your committee should have 2 to 7 people - no more. This committee may not actually do any of the work - they may simply oversee the evaluation and selection process and "steer" the people who are doing the work. In other companies, these 2 to 7 people may conduct some or all of the evaluation and selection work.

2. Budget - The steering committee should prepare the budget range and provide those parameters to the people actually performing the evaluation and selection. Without a budget range, the people performing the evaluation and selection process may waste time evaluating products that are outside the scope of the budget. At a minimum, the budget should include the following:
    
   1. Budgeted cost for new software
   2. Budgeted cost for new hardware
   3. Budgeted cost for implementation and training (25% to 200% the cost of software)
   4. Budgeted cost for on-going support costs and product upgrades (10 to 30% annually)

3. Time Schedule - The steering committee should prepare the a time schedule with targeted milestones and provide those parameters to the people actually performing the evaluation and selection. At a minimum, the time schedule should reflect target dates for the following:
    
   1. Date to begin evaluation process.
   2. Periodic reporting dates in which the steering committee is apprised of progress.
   3. Date by which the options are to be narrowed down to 4 or 5 potential solutions.
   4. Date range for scheduling product demonstrations.
   5. Deadline for receiving all proposals from accounting software publishers or resellers.
   6. Date by which the selection should be made.
   7. Date in which the product and services are ordered (contracted for).
   8. Date by which the implementation and training process should begin.
   9. Date by which the new system should be fully implemented and running properly.

4. Identify the Current Problems – If you are at this stage, it can be safely assumed that a) you already have a current accounting system, and b) your current accounting system is not adequately meeting your needs – else you would not be considering a new system. The first step is to define the problems with your current system – after all if you are unable to come up with a compelling list of shortcomings, weaknesses, or issues, then perhaps you should reconsider the need to replace your current system. To identify the current problems and issues, it may be helpful to use e-mail to solicit feedback from each and every person who uses the accounting system. Assuming you are able to identify enough issues to warrant replacement of the current systems, you are now ready to move forward.

5. Give your Current Reseller a Chance Stage (optional) – It is a good idea to share your problems with your current value-added reseller (VAR) and give them an opportunity to submit a recommendation for solving your problems and issues. If this is an option, keeping your current system is almost always cheaper, easier, and less disruptive on your organization. If the problem IS your VAR, then consider replacing your VAR with a new VAR that works with your product. 

6. Involve Your Information Technology Staff – before you make another move, meet with your internal Information Technology (IT) staff and obtain their advice regarding the technologies and platforms that are best suited for your company based on the current equipment and skill sets of the IT department. This may be a good opportunity to migrate to a better platform based on more current technologies. Your IT staff will be able to give you guidance on which technologies to look for in your search. 

7. Ignore Your Current Hardware and Technology Platform  - Too often many companies seek to find an accounting software solution that will run on their current computer equipment, such as an IBM mainframe. The problem with this approach is that it is backwards – it puts the cart in front of the horse. The best way to proceed is to find the accounting software product that best meets your needs, and only then find the best hardware to run it. If your current hardware can be utilized, that’s great. If your current hardware is inadequate, then you should purchase new hardware – the hardware is by far the least expensive component when it comes to implementing a new ERP accounting system. Chances are very good that if you need to replace your accounting system, then it is also time to replace your hardware anyway.

8. Become Knowledgeable – To get started, it is always helpful to first educate yourself about the ERP Business Accounting software packages that are out there. The Internet can help by making it faster and easier to locate information. But you may also choose to attend independent seminars, vendor sponsored seminars, and trade show exhibition booths, and read newspaper and magazine articles.

8. Compile a List of Potential Solutions  - Make a list of all of the products you are aware of that might meet your needs. Include products that you are aware of, products you read about, products you hear about, products listed on the Internet, etc. If possible, talk to your competitors and ask them what they use and add these to the list as well. So that you can evaluate the products side-by-side, you may consider preparing a more elaborate list – a spreadsheet listing key information for each product. For example, your spreadsheet might include information for modules, pricing, platform, customization capabilities, certified payroll,  time and billing solution, and bar coding – or whatever you determine is most important to your company. The objective here is to focus just on the most important issues and not be blinded by small insignificant shortcomings. This matrix will also be helpful in sharing information with others who may have input into the ultimate decision. For each product you are evaluating, begin tabulating a list of the features and facts that impress you about the company, the product, and the reseller. 

10. Eliminate the Obvious Poor Choices - Start to eliminate potential products due to missing modules, missing key features, or because they are simply too expensive. Cross them off your list and notate why you did. Selecting the right package is mostly a process of eliminating the wrong packages. Generally, you can eliminate many products at this stage. Continue to eliminate products throughout the entire evaluation process.

11. Evaluate Product Features - Next, make a complete listing of the unique features, which your company requires and compare this list to the features provided by each product. There are several good software programs that aid you in this process.  

12. Request Brochures and Evaluation Software – Next, call each accounting software publisher and request their latest brochure information and an evaluation copy of the software. Watch out, this will trigger accounting software sales representatives to come calling on you. 

13. Feature Requirements – At this point, use all of the knowledge and insights you have gained so far to prepare a list of requirements, which the new system should provide. Actually, you should have been preparing this list all along and adding to continually it as new features and capabilities are identified. This should be a short list only one or two pages long listing the most crucial of needs. For example, multi-currency support, consolidation capabilities, serialized inventory, lot control, and e-commerce capabilities might be listed here.

14. RFP Stage (optional) – An RFP is a "Request for a Proposal". Typically this means that you supply accounting software publishers and resellers with a list of the feature requirements you need and questions you have concerning their product. They respond back with an exhaustive report/proposal explaining whether they do, or do not, provide those features. Their proposal will also contain detailed pricing, time lines, and methodologies for accomplishing the implementation and training process. The publishers and/or resellers may spend a great deal of time evaluating your organization and interviewing your personnel in preparation of the RFP. For most companies, RFPs are not a necessary step, however some organizations don’t see it that way. Some management officials are from the old school, and believe that RFPs are an absolute necessity. Further, government agencies are required to undergo the RFP process. To be on the safe side, find out whether management expects you to go through the RFP process before deciding to forgo this step.

15. Identify Top Resellers - By far, the number one complaint in the accounting software industry is "poor resellers". Because this is the single-most important element in the successful implementation of an accounting system, you need to take extra care to make sure that you identify the best resellers and consultants. If you call the company and ask for a referral, the accounting software publisher will typically pass you off to the next reseller on their list, and you may get stuck with a less experienced installer. 

16. Product Demonstration – By this point, hopefully you have identified the best resellers in your area for the products you are considering. Next, you should arrange for these resellers to demonstrate their products to you. They should take time up front to ask you extensive questions about your company and your needs. This will help them better understand what you are looking for and they can then tailor their demonstration to your particular needs. (If they don’t take time to talk to you up front, watch out - you are probably dealing with an inexperienced person.)  Hopefully the reseller will use live software to demonstrate the product to you, but sometimes slides and overheads are used as well. Take the demo for what it is – a sales pitch. Before it is over, hit them with your toughest questions. Have them show you the answers to the questions and how it works in there system. Make sure to ask them about their available time, their installation methodology, their track record for getting the systems up and running properly on time, and a list of at least 3  references whom you can call to check up on their work. You may even ask them to install an evaluation copy of the product on your computer so you can further evaluate the product on your own time.

17. Hands On Testing – Some resellers will provide you with evaluation access to their accounting solution, or by installing the accounting system on your computers. If you access to the prospective accounting software system, this would be a good time to evaluate it hands on. Keep in mind that you will be testing software that you do not know how to use. If you are unable to make something work the way you want it to work, don’t assume that it won’t do it.   Simply write down the problem and address it with your reseller the next chance you get. Make sure to update your list of good and bad points for each product. Include subjective points about performance, look and feel, ease of use, etc.

18. Consider Hosting - Consider having the file server system hosted instead of purchasing the system outright. Hosting is a proven solution that results in significant costs savings, faster implementation, tighter security, and other benefits.  Hosting staff includes experts who are  SQL Server certified, experts in security issues, and experts in wide area networking and remote computing. Here is a guide for hosting solutions.

19. Consider Financing – There are many financing companies available who specialize in financing accounting software and computer systems. With these companies, it is possible to spread the purchase costs over many years through lease payments which result in a better matching of cash flow and benefits received. There may be tax advantages as well, depending on your circumstances (for example, if your company has already maximized it’s section 179 depreciation deductions through the purchase of other equipment, then leasing may result in larger deductions on your tax return).

20. Call References – The most important step you can take is to call references. Presented below are a few simple questions that you may want to ask of previous customers: 
    1. Do you use OpenPro  Software? 
    2. When did you install it? 
    3. How long did it take from start to finish?
    4. Who performed the installation (reseller and names of consultants)?
    5. Did they do a good job and install the system in a timely manner? 
    6. Are you satisfied with the product? 
    7. What problems have you had with the product? 
    8. Would you recommend the product to others?

These eight questions are usually all you need, as they will flush out any problems with the resellers or the product. 

Decision Time

At this time, you should be in a good position to select an ERP Business Accounting software package. If you have more than one package left on your list, make a decision based on guts or instincts. If you still can’t decide, choose the product that is easiest to use on a day-to-day basis, the product that is built on top of the most promising technology, or the product that offers the strongest reporting. Otherwise, flip a coin. We believe that the actual price of the software is not really relevant (within 200% or so). The real cost of accounting software is the time required to get it up and going and the time required each day to implement manual work around procedures to compensate for missing features and reports.

Conclusion

The reality is that the apparent winner may reveal itself long before you complete all the steps described above. Still, it is a good idea to run through all of these steps just to be on the safe side. Some companies can make this decision easily in just a few weeks with the assistance of a consultant. Other companies must endure a much longer ordeal to arrive at the best choice. You alone must make the determination as to how much effort is warranted to select the best accounting software package to meet your current and future needs.